New York, Monday, 10 January 2022 -
In December 2021, consumer inflation forecasts in the United States were unchanged from November, at a record 6 percent. Home price forecasts increased to 5.5 percent in November from 5% in November, but they remained below their peak in May 2021.
In addition, uncertainty and disagreement about future inflation decreased, with expectations for year-ahead price changes falling by 3.5 percentage points for gas (to 5.7 percent), 1.4 percentage points for food (to 7.8%), and 1.0 percentage point for the cost of a college education (to 1.0 percent) (to 8.1 percent ). At the same time, households expressed more optimism about their work prospects, with earnings growth, job loss, and job search forecasts all improving.
Households' income growth forecasts improved as well, reaching a new high in the series. Meanwhile, inflation estimates for the next three years remained unchanged at 4%.
(Source: Federal Reserve Bank of New York)